At a recent trade show, I unveiled a banner that read “Where’s the Beef?” The idea behind the message was to really get printing owners to think about where’s the beef in their businesses. In other words, what is your business really worth?

It’s amazing how many owners really don’t understand what’s driving their business: Profitability.  They think revenue or number of clients or how much they pay themselves is a sign of success. It may be for you, but profits always wins out over prestige in the eyes of the investor.

So how do you ensure you’re focused on profits, and not prestige?  Here are a few ideas:

1. Take a good hard look at the numbers that matter – We always encourage people to get a business valuation, whether you are selling your company or not. Understanding how much you’re worth is really the starting point for strategic change.

You’ll also get an outside perspective.  You’ll understand how investors are really looking at your business, and what it takes.

2. Tackle some internal issues – Many owners are caught in the endless cycle of pursuing more leads, more sales and more business. That’s all great, but at the end of the day, you need to be profitable. Your internal systems need to run efficiently and effectively.

Start integrating lean operations into your processes.  Pinpoint where delays are occurring operationally, and make the improvements necessary to start driving more profitable processes.

3. Find out what’s truly your most profitable product or service – Do you honestly know what’s the most profitable product or service for your company?  If you do, are you redirecting efforts to create more success in that area?  I find it amazing how many owners aren’t clear on what’s boosting their bottom line.

4. Look at your competition – Find comparables for businesses that have sold recently that are similar to yours.  Do you see any similarities in the size of their operation?  Can you pinpoint their EBITDA, and use it to gauge how profitable you are, or how much you need to be?

5. Evaluate your role in the picture – There’s no time like the present to get introspective.  As the owner, you need to add value to the overall picture.  So are you?  What is your role, and how do you see it expanding / contracting?  Selling any business or preparing it for an exit always requires a bit of vision and planning.  Can you reinvent yourself?

The numbers don’t lie, folks. They’re truly what’s the beef in your business. So take a good, in-depth look at what’s driving your success.


Rock LaManna is the author of L&NW’s popular column, The Bottom Line. Rock helps printing owners and CEOs use their company financials to prioritize and choose the proper strategic path. He is President and CEO of the LaManna Alliance, and provides guidance on how to grow a printing business, merge with a synergistic partner, make a strategic acquisition, or create a succession plan. Rock can be reached by email at [email protected].